Utusan to downsize 50% staff

Updated 5 years ago · Published on 21 Sep 2018 4:25PM · 5 Comments

Utusan Malaysia's owner, Kumpulan Utusan Melayu Bhd, is now a PN-17 company, denoting its financials are inadequate as a listed entity. – The Malaysian Insight file pic, September 21, 2018.

UMNO-CONTROLLED Malay daily, Utusan Malaysia, today offered voluntary separation scheme (VSS) letters to its 1,500 employees in a restructuring exercise aimed at off-loading at least 50% of the workforce to overcome its financial constraints.

Sources told The Malaysian Insight the decision was made at a meeting between Utusan Melayu (Malaysia) Bhd executive chairman Abd Aziz Sheikh Fadzir and its staff at its headquarters in Kuala Lumpur today.

“The meeting was to brief the staff on the offer package and method of payment,” said a source.

Another source said the offer from the management is valid from today until October 10.

Another source who attended the briefing said the severance package offered was their final drawn salary multiplied by the number of years of service.

The payment will be paid in stages with an initial payment of two months’ salary, added the source.

“We were told the severance package will be funded from the sale of assets that are not being used by the stakeholders,” the source said.

However, those present at the meeting were not told which assets were to be sold off.

In the newspaper’s annual meeting in June, the management revealed plans to downsize the company to more than half of its original size to reduce losses up to RM8 million a month.  

The company failed to pay salaries on time in August and September for non-executive staff, which led its journalists and photographers to plan a picket.

The National Union of Journalists (NUJ) body of the Utusan chapter advised reporters and photographers to stop work as a sign of protest.

The Malaysian Insight also understands that no official statements have been issued by the management to explain the delays in payments. 

The Malaysian Insight is trying to contact Aziz for comments. – September 21, 2018. 

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Comments

  • How many Awang Selamats are in that lump of 50%?

    Posted 5 years ago by Rock Hensem · Reply

  • just close shop la...there is no point to continue to work at utusan....its only good as a nasi lemak wrapper

    Posted 5 years ago by Anonymous 1234 · Reply

  • Ini semua salah dap !!

    Posted 5 years ago by Msian First · Reply

  • Awang Selamat kena sembelih ke tidak?

    Posted 5 years ago by Jubu Laza · Reply

  • Jadi awang tak dapat selamatkan utusan

    Posted 5 years ago by Kenneth Tan · Reply